Engineering consultancy : an assessment of IT-enabled international delivery of services

The discussion presented here has addressed the issue of whether IT-enabled production and delivery of engineering consultancy services would fundamentally change patterns of trade and investment, and whether they would present challenges for reengineering of business processes for firms in the sector. We have seen that many of the large, international firms already utilize information technology and more advanced telecommunication links in order to promote co-operation between various offices or project groups. With the assistance of such technologies, firms have been able to further exploit ownership advantages such as economies of scale and scope, enabling them to strengthen their position vis-à-vis local competitors. Ownership advantages have always been very important in defining the competitive position of a few major engineering consultants, which rely on their reputation and a pool highly qualified labour. But the growth and integration of IT-based systems enable firms to deploy these resources in a more systematic and efficient manner over long distances.